Union Pacific Corp UNP

Morningstar Rating
$243.35 −2.20 (0.90%)
View Full Chart

Company Report

Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks

As anticipated, the International Longshoremen’s Association has implemented a work stoppage across US East Coast and Gulf Coast ports. As we understand it, the dockworkers union initially wanted a more than 70% increase in wages over a six-year period in order to return to the negotiating table. Before the strike, it sounded to us as if the Biden administration was signaling hesitancy to intervene via the Taft-Hartley Act. Thus, the potential duration of the strike remains uncertain.

Price vs Fair Value

UNP is trading at a 728% premium.
Price
$243.35
Fair Value
$294.00
Uncertainty
Medium
1-Star Price
$481.20
5-Star Price
$187.70
Economic Moat
Cvbf
Capital Allocation
Kbgltmrg

Bulls Say, Bears Say

Bulls

International intermodal volumes flipped positive this year on a solid US West Coast import recovery, including an uptick in retailer inventory restocking.

Bears

Domestic-intermodal pricing headwinds from depressed rates in the competing truckload sector will linger into first half 2024.

News

Trading Information

Previous Close Price
$245.55
Day Range
$242.21246.19
52-Week Range
$199.33258.66
Bid/Ask
$240.55 / $246.10
Market Cap
$148.25 Bil
Volume/Avg
2.6 Mil / 2.3 Mil

Key Statistics

Price/Earnings (Normalized)
22.85
Price/Sales
6.15
Dividend Yield (Trailing)
2.15%
Dividend Yield (Forward)
2.20%
Total Yield
2.22%

Company Profile

Omaha, Nebraska-based Union Pacific is the largest public railroad in North America. Operating on more than 30,000 miles of track in the western two thirds of the us, Union Pacific generated $24 billion of revenue in 2023 by hauling coal, industrial products, intermodal containers, agriculture goods, chemicals, fertilizers, and automotive goods. Union Pacific owns about one fourth of Mexican railroad Ferromex and historically derives roughly 10% of its revenue hauling freight to and from Mexico.
Sector
Industrials
Industry
Railroads
Stock Style Box
Large Value
Total Number of Employees
30,556

Competitors

Valuation

Metric
UNP
NSC
CSX
Price/Earnings (Normalized)
22.8522.7518.87
Price/Book Value
9.004.305.25
Price/Sales
6.154.634.60
Price/Cash Flow
16.6819.9312.88
Price/Earnings
UNP
NSC
CSX

Financial Strength

Metric
UNP
NSC
CSX
Quick Ratio
0.760.500.98
Current Ratio
1.050.631.16
Interest Coverage
7.413.866.61
Quick Ratio
UNP
NSC
CSX

Profitability

Metric
UNP
NSC
CSX
Return on Assets (Normalized)
9.70%6.06%8.45%
Return on Equity (Normalized)
43.80%19.67%28.89%
Return on Invested Capital (Normalized)
15.24%10.56%13.22%
Return on Assets
UNP
NSC
CSX

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